LCB-CEO
$150,000 LCB post for retired legislator : Dec. 13, 2006, By Mario Cattabiani, Inquirer Staff Writer Joe Conti will become CEO, a new position. The liquor board's chair said he was "very disappointed" by the move. HARRISBURG - Out of a job for only two weeks, former State Sen. Joe Conti today will be named chief executive officer of the Pennsylvania Liquor Control Board, a newly created $150,000-a-year post with the nation's largest buyer of wine and spirits. The Rendell administration pushed the appointment of the Bucks County Republican, calling him perfect for the job. Yet the news was immediately met with outrage by the LCB chairman. "This is not transparency in public government," said Jonathan Newman, adding that he learned of Conti's hiring when Rendell's office gave him a job description for the new position at 3 p.m. yesterday. "I'm very disappointed and very concerned that this is what government comes down to." Conti, who served for 12 years in the House and Senate before retiring at the end of November, will make more than twice the chairman's $65,572 salary and be in charge of day-to-day operations of the agency, which operates 643 state liquor stores. If a chief executive officer was needed, Newman said, there should have been a nationwide search. "I do not believe it is appropriate for the LCB to pay an unprecedented salary of $150,000 in the style and manner in which this was done," he said. Newman said he planned to oppose the appointment this morning, when the board is scheduled to vote on Conti's hiring. He stressed that he had nothing against him personally. "In fact, he's a nice guy," Newman said. It appeared that the chairman would be outnumbered this morning. The other members of the board, P.J. Stapleton and Thomas Goldsmith, lauded Conti, as did a Rendell spokeswoman. They said that the management structure now in place, with three board members trying to oversee most major functions, was antiquated and that there was a dire need for a chief executive. As CEO, Conti would oversee everything from marketing to procurement to lease arrangements with private businesses and would answer to the board. Rendell appointed all three members of the board to their current terms, although Stapleton and Newman were holdovers from past administrations. LCB oversight In the Senate, Conti served as chairman of the Law and Justice Committee, which oversees the LCB, during the time the agency expanded Sunday sales and allowed wine tastings at stores. He formerly ran two of his family's restaurants in the Philadelphia suburbs. "He can hit the ground running," Goldsmith said. "He is totally familiar with the issues facing us." Goldsmith also defended Conti's salary. "It's a bargain price. This is a $1.7 billion business," he said. "In the private sector, a CEO would be making $1 million a year." Stapleton called the salary "peanuts," adding that Conti "is very knowledgable about the operation of the agency. And this isn't an agency that's easy to understand." Approached yesterday at the Capitol, Conti declined to comment, saying the appointment was not official until the board voted. In a year-end interview with Capitol reporters Monday, Rendell stressed that he was pleased with the direction of the liquor board. Among other recent changes, the board has expanded selections and opened 20 locations inside supermarkets. But Rendell said the new position was needed nevertheless. "We need a day-to-day operator," he said, without elaborating. Sought for months Kate Philips, Rendell's press secretary, said yesterday that the governor advocated the creation of the position for many months. Last year, expenses grew faster than revenue in what Philips said translated into a $10 million profit drop. "We think it's absolutely necessary to bring a professional manager in before this trend becomes irreversible," Philips said, "and Joe Conti is the perfect person." In a move that surprised many, Conti decided in January not to seek another Senate term. He had taken the controversial legislative pay raise in 2005 and at first refused to voluntarily give it back. Conti's explanation - that he would not return the money because he had spent it on a home water heater - drew widespread criticism, and he later reimbursed the state. Conti becomes the third known retiring state lawmaker to quickly parlay his legislative career into a lucrative job in state government. Many others in the General Assembly's large outgoing class are trying to do the same. Last week, Mark McNaughton, a Republican who represented the Harrisburg suburbs in the House for 10 years, was nominated by Speaker John M. Perzel to the Gaming Control Board. He would replace outgoing member Joseph W. "Chip" Marshall III in a job that pays $145,000, more than double the $72,187 McNaughton was making as a legislator when he left office Nov. 30. Brett Feese, who represented Lycoming County for 12 years in the House, the last two years as the Appropriations Committee chairman, began work as chief counsel to House Republicans Dec. 1, 2006, the day after his term ended. He is making $155,000 annually. Links * Liquor Control Board * Perks category:news coverage